Meyer To Go After ‘Third Rail’ Of Delaware Politics?
That ‘third rail’ being the corporate golden egg that fills the state’s coffers:
Delaware’s budget depends on more than $2 billion brought in by its leading corporate franchise work, which helps to keep the cost of living lower for residents. A recent spate of high-profile corporate departures has unnerved state leaders, however, and now reforms may be in the cards for the first time in years.
Delaware’s business and legal scene is unsettled following new reports of high-profile companies contemplating Delaware corporation departures, and following what some in the community believe is a troubling appetite for reform by Gov. Matt Meyer’s new administration.
Ah, yes, ‘some in the community’. Those who quake whenever Musk opens his big yap:
“Companies are flooding out of Delaware, because the activist chief judge of the Delaware court has no respect for shareholder rights,” he wrote on X on Feb. 1, referring to Chancellor Kathaleen McCormick who presided over his two latest cases.
As in Musk’s self-proclaimed right to bank obscene compensation, as if he needed it.
The flurry of news prompted the development of a new term “DExit,” referencing those companies leaving Delaware with a nod toward Brexit, and increased scrutiny in the press and on social media.
“Ever since the judicial activism against Tesla shareholders, I redirected the incorporation of the last four companies I’ve bought or started to Nevada. Activism has a price and DE will pay it as fewer companies pick them. There’s just too much risk to be incorporated in DE anymore,” Palihapitiya added on X.
Yes, the risk of scrutiny from the press and social media in a state that prides itself on hiding its secrets from its citizens. AKA The Delaware Way. Which has always depended on bipartisan secrecy.
That climate of criticism grew last year, when the state legislature approved amendments to the Delaware General Corporate Law that supported deals cut by controlling shareholders. While the corporate bar supported the changes, the state’s judiciary and a number of law school professors opposed them.
Meyer’s involvement in this remains unclear, especially due to how TransPerfect funded a significant portion of Meyer’s campaign:
With the First State finding itself the topic of national conversation, Gov. Meyer appeared on CNBC and NewsNation in the past week, and was interviewed by Business Insider to try to rebuff the narrative.
In each interview, Meyer asserted that “there need to be changes.”
“We need to make sure that every litigant who comes into Delaware’s very unique and special Chancery Court .. needs to get a fair shot. We’re looking at it. You’re going to see changes coming in the coming weeks,” he said on NewsNation on Sunday.
Yet the closeness of the TransPerfect-aligned group and Gov. Meyer, who benefited from its $1 million of campaign advertising blitzes against his foremost primary election rival, former Lt. Gov. Bethany Hall-Long, has also drawn skepticism in the legal community. Shawe attended Meyer’s inauguration.
When asked about the concern from Delaware’s corporate law industry over those ties and his appetite to reform the courts, the governor’s office downplayed any connection to Shawe.
“The Delaware Judiciary is the best in the nation. Between our Judges and our jurisprudence, we are the best place in the world to incorporate. That’s why nearly 70% of Fortune 500 companies incorporate here. However, it is the Governor’s job to protect our revenue streams, make sure our laws are keeping up with the competition, and listen to stakeholders. The Governor will always prioritize protecting Delawareans above all else and that’s exactly what he’s doing,” said Nick Merlino, the governor’s deputy chief of staff.
If I sound less than certain about what should be done, that’s because I’m less than certain about what should be done.
You may not be, though. So, whaddayathink?
Little known fact, corporate lawyers Kyle Evans Gay and Bryan Townsend were behind many of these shady pro corporation amendments being snuck in over the years. No one noticed because mostly no one ever cares.
I be careful if I was Matt, any association with the frauds that are the Transperfect scam movement (aka a pissed off rich guy mad he lost a lawsuit) should be weary. They are all outside New Yorkers tying to ruin the Delaware judiciary because they are bitter they lost. These people don’t have good intentions.
If I had known Meyer was on speaking terms with Shawe I wouldn’t have voted for him.
Is this a joke?
No, why would it be? Phil Shawe is an asshole out for revenge. Fuck him and anyone who likes him.
You honestly thought Meyer and his team weren’t in constant contact with Shawe? Not trying to take a shot at you but no one in politics is dropping $1M without a verbal commitment from the candidate they’re supporting. PAC laws are paper tigers. Meyer and his team were in contact with Change can’t wait and the Transperfect PAC the entire campaign. Shaws team also paid a bunch of people off in Wilmington with cash the two weeks leading up to the primary.
I’m not exposed to any of the advertising, and I got accustomed to him throwing money at stuff just to fuck people over. I didn’t know he was endorsing Meyer, just that he was against BHL.
Wow Alby.. I’m surprised that 70mph “fastball” went right by you. No shade, I’m legitimately shocked. Shawe put up $1 million against a Lt Gov who had zero power or authority to impact him during that fiasco. If he were just in this to screw with people, he probably would have put money into the Mayor’s race, since it was Carney who originally pissed him off. But the Mayor of Wilmington has zero control over the corporate franchise. However, he didn’t get involved in any other race. He only attacked Matt’s opponent. It’s utterly shocking that anyone is shocked.
I just saw this comment and restored it; if you deleted it yourself go ahead and trash it again.
Yeah, I missed that Shawe was for Meyer rather than against BHL. That Meyer would take the help is understandable, but for Meyer to give him influence is something else again.
I had my own reasons for not trusting Meyer, mainly the people I already knew were backing him. Shawe is icing on that cake.
Meyer was on a stage with Shaw’s tool Al Sharpton during the campaign while the latter did his schtick decrying the Delaware Courts’ lack of diversity, which is just one of the way’s Transperfect has been trolling Delaware. He had Shaw on stage at his inauguration as well. Shaw’s PAC paid for many anti-Bethany mailers and perhaps other kinds of ads (I just know what it said on the Paid for disclosure on the mailers I received, but there may have been digital ads and such too). We had no great choices in that Governor’s race. Corrupt, incompetent Hall-Long or compromised, unable to get along with anyone except his sycophants Meyer. Oh, and occasional Delawarean O’Mara, who was possibly the least objectionable but also the least tested and experienced choice.
Yeah, fuck Meyer, then. I didn’t like him in the first place, just liked him better than the other poor choices.